Research On Business Strategy And Performance Of Great Wall Motors From The Perspective Of Value Chain

The automotive industry is one of the key industries supporting China’s economic development.According to the latest data released by China’s automobile industry association,China’s automobile production and sales volume increased steadily in 2022,with annual automobile production and sales volume completing 27,021,000 and 26,884,000 units respectively.There are still many technical challenges to overcome.With the promotion of artificial intelligence and blockchain,intelligent technology is accelerating a new round of industrial revolution,and the automotive industry is also witnessing new changes.In the context of the development of the new four automotive industries and the continuous expansion of the international market,Chinese automotive companies are facing new opportunities and challenges.In such a tough competitive market environment,studying business strategies from the perspective of the value chain,analysing the value-added points in the value chain links and the effect of implementing business strategies on them can help enterprises establish unique competitive advantages,thereby achieving cost reduction and efficiency gains,and realising sustainable development of enterprises.This paper adopts a case study approach to study the business strategy of Great Wall Motor and its performance.Firstly,the PEST model is used to sort out the macro environment in which Great Wall Motor’s business strategies are formulated,followed by the Porter’s Five Forces model and the SWOT matrix to analyse the basis for implementing Great Wall Motor’s business strategies.Secondly,the internal and external value chains are used to analyse the implementation of the current business strategies of Great Wall Motor.The preliminary conclusion is that the business strategies of the internal value chain include emphasising R&D capability,focusing on market segments and optimising marketing services,while the business strategies of the external value chain include vertically integrating the value chain,making international investment and cooperation,and establishing a dealership management system.Finally,the performance analysis of the business strategy was carried out on its financial indicators,non-financial indicators and economic value added,and a comprehensive analysis and evaluation was conducted based on the main links of its value chain in order to draw conclusions on the effectiveness of the implementation of Great Wall Motor’s business strategy,identify the problems and their causes,such as the low efficiency of Great Wall Motor’s research and development,low cost control,unstable sales profitability,fragmented parts procurement,low contribution from major dealers,etc.The article also identifies problems such as low R&D efficiency,low cost control,unstable sales profitability,significant accounts receivable,fragmented parts procurement,and low contribution from major distributors.In response to these problems,the article puts forward corresponding suggestions for optimisation,such as precise R&D,strengthening cost control,widening sales channels,optimising the selection mechanism of suppliers,building a dealer network and other measures,in the hope of contributing to the optimisation of business strategies and the enhancement of core competitiveness for Great Wall Motor and the automotive industry as a whole.